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ROBERT L. MATHIS

JOHN H. JACKSON

Changing Nature of Human

Resource Management

Changing Nature of Human

Resource Management

Chapter 1

SECTION 1Nature of

Human Resource

Management

Presented by:

Prof. Dr. Deden Mulyana, SE.,M,Si.

Learning Objectives

• After you have read this chapter, you should be able to:

�Define HR management and identify the seven

categories of HR activities.

�Discuss three challenges facing HR today.

�Describe how the major roles of HR management are

being transformed.

� Identify the purposes and uses of HR technology.

�Discuss why ethical issues affect HR management.

�Explain the key competencies needed by HR

professionals and why certification is important.

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Nature of Human Resource Management

• Human Resource (HR) Management

�The design of formal systems in an organization to

ensure effective and efficient use of human talent to

accomplish organizational goals.

• Who Is an HR Manager?

� In the course carrying out their duties, every operating

manager is, in essence, an HR manager.

�HR specialists design processes and systems that

operating managers help implement.

HR Management

Activities

Source: HR Department Benchmarks and Analysis Survey 2004 (Washington, DC: Bureau of National Affairs, 2004), 21. To purchase this publication and find out more about other BNA HR solutions visit http://hrcenter.bna.com or call 800-372-1033. Used with permission. Figure 1–1

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HR Activities

• Strategic HR Management

• Equal Employment Opportunity

• Staffing

• HR Development

• Compensation and Benefits

• Health, Safety, and Security

• Employee and Labor Relations

Smaller Organizations and HR Management

Compliance with Government Regulations

Shortage of Qualified Workers

Increasing Costs of Benefits

Rising Taxes

Issues of Greatest

Concern

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Cooperation of HR with Operating Managers

• HR Unit

�Develops legal, effective

interviewing techniques

�Trains managers in

conducting selection

interviews

�Conducts interviews and

testing

�Sends top three applicants

to managers for final review

�Checks references

�Does final interviewing and

hiring for certain job

classifications

• Managers

�Advise HR of job openings

�Decide whether to do own

final interviewing

�Receive interview training

from HR unit

�Do final interviewing and

hiring where appropriate

�Review reference

information

�Provide feedback to HR unit

on hiring/rejection decisions

Who Handles Training and Development

Figure 1–2

Note: Length of bars represents prevalence of activity among all surveyed employers.

Source: HR Department Benchmarks and Analysis Survey 2004 (Washington, DC: Bureau of National Affairs, 2004), 21. To purchase this publication and find out more about other BNA HR solutions visit http://hrcenter.bna.com or call 800-372-1033. Used with permission.

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Typical Division of HR Responsibilities: Training

Figure 1–3

Management of Human Capital

In Organizations

• Human Capital

�The collective value of the capabilities, knowledge,

skills, life experiences, and motivation of an

organizational workforce.

� Also known as intellectual capital.

� How to measure the strategic value of human assets?

• Core Competency

�A unique capability that creates high value and

differentiates an organization from its competition.

� HR competencies: a source of competitive advantage.

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HR Management Challenges

• Globalization of Business

�Outsourcing and increased competition

�The threat of terrorism

• Economic and Technological Changes

�Occupational shifts from manufacturing and

agriculture to service industries and

telecommunications.

�Pressures of global competition causing firms to

adapt by lowering costs and increasing productivity.

• Technological Shifts and the Internet

�Growth of information technology.

Fastest Growing Jobs to 2010

Figure 1–4Source: U.S. Bureau of Labor Statistics, www.bls.gov.

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HR Management Challenges

• Workforce Availability and Quality Concerns

� Inadequate supply of workers with needed skills for

“knowledge jobs”

�Education of workers in basic skills

• Growth in Contingent Workforce

� Increases in temporary workers, independent

contractors, leased employees, and part-timers

caused by:

� Need for flexibility in staffing levels

� Increased difficulty in firing regular employees.

� Reduced legal liability from contract employees

HR Management Challenges

• Workforce Demographics and Diversity

� Increasing Racial/Ethnic Diversity

�More Women in the Workforce

� Single-parent households

� Dual-career couples

� Domestic partners

� Working mothers and family/childcare

�Significantly Aging Workforce

� Age discrimination

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HR Management Challenges

• Organizational Cost Pressures and Restructuring

�Mergers and Acquisitions

� “Right-sizing”—eliminating of layers of management,

closing facilities, merging with other organizations,

and outplacing workers

� Intended results are flatter organizations, increases in

productivity, quality, service and lower costs.

� Costs are “survivor mentality”, loss of employee loyalty, and

turnover of valuable employees.

�HR managers must work toward ensuring cultural

compatibility in mergers.

HR Management Roles

• Administrative Role

�Clerical and administrative support operations (e.g.,

payroll and benefits work)

� Technology is transforming how HR services are delivered.

� Outsourcing HR services to reduce HR staffing costs

• Operational and Employee Advocate Role

� “Champion” for employee concerns

� Employee crisis management

� Responding to employee complaints

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Changing Roles of HR Management

Figure 1–5Note: Example percentages are based on various surveys.

Strategic Role for HR

• Strategic Role

� “Contributing at the Table” to organizational results

�HR becomes a strategic business partner by:

� Focusing on developing HR programs that enhance

organizational performance.

� Involving HR in strategic planning at the onset.

� Participating in decision making on mergers, acquisitions,

and downsizing.

� Redesigning organizations and work processes

� Accounting and documenting the financial results of HR

activities.

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Operational to Strategic Transformation of HR

Figure 1–6

New Approaches to HR Management

• Collaborative HR

�The process of HR professionals from several

different organizations working jointly to address

shared business problems.

� Firms benefit from the expertise of other firms, without having

the time and expense of developing some of their own HR

practices.

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HR Technology

• Human Resource Management System (HRMS)

�An integrated system providing information used by

HR management in decision making.

�Purposes (Benefits) of HRMS

� Administrative and operational efficiency in compiling HR

data

� Availability of data for effective HR strategic planning

�Uses of HRMS

� Automation of payroll and benefit activities

� EEO/affirmative action tracking

� HR Workflow: increased access to HR information

– Employee self-service reduces HR costs.

Uses of an HRMS

• HRMS

�Bulletin boards

� What information will be available and what is information

needed?

�Data access

� To what uses will the information be put?

�Employee self-service

� Who will be allowed to access to what information?

� Web-based services and access

�Extended linkage

� When, where, and how often will the information be needed?

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Ethics and HR Management

• Firms with High Ethical Standards

�Are more likely to reach strategic goals.

�Are viewed more positively by stakeholders

�Are better able to attract and retain human resources.

• Ethics and Global Differences

�Different legal, political, and cultural factors in other

countries can lead to ethical conflicts for global

managers.

�Foreign Corrupt Practices Act (FCPA)

� Prohibits U.S. firms from engaging in bribery and other

practices in other countries.

HR’s Role in Organizational Ethics

• HR management plays a key role as the “keeper and voice” of organizational ethics.

• What is Ethical Behavior?

�What “ought” to be done.

�Dimensions of decisions about ethical issues in

management:

� Extended consequences

� Multiple alternatives

� Mixed outcomes

� Uncertain consequences

� Personal effects

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Examples of Ethical Misconduct in HR Activities

Figure 1–7

HR’s Role in Organizational Ethics (cont’d)

• Responses to Ethical Situations

�Are guided by values and personal behavior “codes”

that include:

�Does response meet all applicable laws, regulations, and

government codes?

�Does response comply with all organizational standards of

ethical behavior?

�Does response pass the test of professional standards for

ethical behavior?

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Ethical Behavior and Organizational Culture

• Organizational Culture

�The shared values and beliefs in an organization

�Common forms of unethical conduct:

� Lying to supervisors

� Employee drug use or alcohol abuse

� Falsification of records

• Fostering Ethical Behavior

�A written code of ethics and standards of conduct

�Training on ethical behavior for all employees

�A means for employees to obtain ethical advice

�Confidential reporting systems for ethical misconduct

HR Management Competencies

and Careers

• Important HR Competencies

�Strategic contribution to organizational success

�Business knowledge of organization and its strategies

�Effective and effective delivery of HR services

�Familiarity with HRMS technology

�Personal credibility

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HR Management as a Career Field

• HR Generalist

�A person with responsibility for performing a variety of

HR activities.

• HR Specialist

�A person with in-depth knowledge and expertise in a

limited area of HR.

HR Specialists

Figure 1–8

Source: HR Department Benchmarks and Analysis 2004 (Washington, DC: Bureau of National Affairs, 2004), 119. To purchase this publication and find out more about other BNA HR solutions visit http://hrcenter.bna.com or call 800-372-1033. Used with permission.

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HR Certification

Figure 1–9

The Human Resource Certification Institute offers three types of professional certifications for HR generalists.

Details on these certifications are available from the

Human Resources Certification Institute, www.hrci.org.

GPHR Certification

• Global Professional in Human Resources (GPHR) certification subject areas:

�Strategic international HR management

�Organizational effectiveness and employee

development

�Global staffing

� International assignment management

�Global compensation and benefits

� International employee relations and regulations

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Other HR Certifications

• Certified Compensation Professional (CCP), sponsored by the World at

Work Association

• Certified Employee Benefits Specialist (CEBS), sponsored by the

International Foundation of Employee Benefits Plans

• Certified Benefits Professional (CBP), sponsored by the WorldatWork

Association

• Certified Performance Technologist (CPT), co- sponsored by the

American Society for Training & Development and the International Society

for Performance Improvement

• Certified Safety Professional (CSP), sponsored by the Board of Certified

Safety Professionals

• Occupational Health and Safety Technologist (OHST), given by the

American Board of Industrial Hygiene and the Board of Certified Safety

Professionals

• Certified Professional Outsourcing, provided by New York University and

the Human Resource Outsourcing Association